Big Business Paid For Their Beds

Scott Walker  and Wisconsin Legislature’s Lies

Historian and satirist Thomas Carlyle said “a lie cannot live.” However, Mark Twain casually remarked, “It shows that he did not know how to tell them.”

More than a century later, newly-elected Gov. Scott Walker and the Republican-dominated Wisconsin legislature have proven themselves to be “quick studies,” having learned how to tell whoppers about the working class and unions. Here are just a few.

LIE: The public workers’ pensions are what caused much of the financial crisis not just in Wisconsin but throughout the country. Gov. Walker has repeatedly said, “We’re broke . . . We don’t have any money.”

FACTS: Wisconsin had a $120 million surplus when Walker came into office in January 2011. Had the newly-elected Republican-dominated Legislature in January not given about $140 million in special tax breaks (also known as “corporate welfare”) to business, the state could have had a surplus, according to the Legislative Fiscal Bureau. About two-thirds of all Wisconsin corporations pay no taxes at all, according to the Wisconsin Department of Revenue.

Wisconsin could also save significant expenses by having state-employed fiscal analysts, not Wall Street investment counselors, handle the entire pension investment portfolio. Wisconsin pays about $28 million to state managers to handle about half the portfolio; it pays about $195 million to Wall Street investment brokers to handle the other half, according to the 2010 annual report of the Wisconsin Investment Board.

Noam Chomsky, in an interview with Amy Goodman of “Democracy Now,” correctly points out, “the population in the United States is angry, frustrated, full of fear and irrational hatreds. And the folks not far from you on Wall Street are just doing fine. They’re the ones who created the current crisis.” The Great Recession has cost states revenue, not because of the workers’ salaries and pensions but because the values went down because of lax oversight primarily during a Republican administration. Even with the Wall Street crisis, and lower-than-expected revenue, the Wisconsin pension fund is fully funded, able to meet its obligation for several years, according to the independent PEW Center for the States.

Columnist Robert Greenwald says the “shortfall” would be wiped out if Wisconsin brought home only 151 troops from the war in Afghanistan. If the U.S. left Afghanistan completely, the state would save $1.7 billion, according to Greenwald’s analysis.

LIE: The reason the Republicans throughout the country want to end collective bargaining by the public service unions is to bring fiscal responsibility to the states.

TRUTH: In January 2010, the Supreme Court by a 5–4 decision along party lines declared that corporations enjoy the protection of the First Amendment. This meant that companies could increase funding and advertising for candidates. As expected, the Chamber of Commerce and corporate America gave vast amounts of money to Republican and conservative candidates; labor donated to liberal and Democratic candidates, who traditionally support the working class. In the 2010 mid-term election, seven of the top 10 donors contributed to conservative and Republican candidates. The other three in the Top 10 were labor political action committees. Eliminating collective bargaining for public sector workers would destroy the union movement and significantly reduce the influence of labor in campaigns. Walker has already shown his colors and intent when he was caught in a radio prank. On Feb. 23, Ian Murphy, editor of The Buffalo Beast, pretended to be billionaire David Koch, a supporter of far-right causes, and a major contributor to Walker’s gubernatorial campaign. Punked by the 20-minute call, Walker seemed to be little more than a sycophant for Big Business. The Republicans’ reaction? Instead of worrying about possible ethics violations by the governor, the Republicans planted a bill into the legislature to criminalize prank phone calls

LIE: The unions are greedy and won’t budge.

FACTS: The 267,000 Wisconsin public sector workers, as well as all elected officials, Democrat and Republican, do pay very little to their pensions. However, the unions have already said they’d be willing to pay a higher contribution, essentially taking an 8 percent pay cut, and negotiate fairly other parts of the contracts. Gov. Walker not only refused to budge on his autocratic stand, he refused to take calls from elected Democrats and bluntly told the Milwaukee Journal, “I don’t have anything to negotiate.”

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